The move is part of Apple's broader strategy to reduce dependence on China and expand its manufacturing capabilities in India.
Apple plans to manufacture the iPhone 16 Pro and Pro Max models in India, marking a major step in expanding production outside of China. This is the first time Apple will assemble its high-end iPhone Pro models in India through its partner Foxconn, according to sources familiar with the matter. Moneycontrol first reported this story.
Apple has been gradually expanding its manufacturing capabilities in India. Last year, the company made iPhone 15 models available to local customers on the first day of global sales. The production of Pro models in this market has been under consideration for some years, and this year Apple will ensure that the locally assembled iPhone 16 Pro models are available after launch.
Foxconn's facility in Sriperumbudur, Tamil Nadu will soon start the "new product introduction" (NPI) process for the Pro models of the iPhone 16 and will go into mass production when the phone is launched. Initially, the Pro and Pro Max models will be imported, but India-made Pro models will be available within this financial year, as will the iPhone 15 Plus.
Apple's manufacturing expansion in India is part of a larger strategy to reduce its reliance on China due to ongoing geopolitical tensions and past supply chain disruptions. For example, during the release of the iPhone 14 Pro, the largest iPhone factory in China experienced lockdowns and riots, which delayed deliveries. This China Plus One strategy has been adopted by several companies as the geopolitical situation in China worsens.
"In the initial phase of availability of the iPhone 16 series, it is likely that the Pro and Pro Max models will be imported. But Apple will make India-made Pro models available within this financial year, just as they did with the Apple 15 Plus ,” a source told Moneycontrol.
Apple's share of India's smartphone market is growing. According to Counterpoint, Apple accounted for 23% of smartphone revenue in 2023, surpassing Samsung's 21%. Apple shipped over 10 million iPhones in 2023 in India, up from 6 million in 2022, securing the top spot for the year.
The Cupertino-based company is preparing 90 million units of iPhone 16 units by 2024, 10% more than the iPhone 15 series. Apple expects high demand for the iPhone 16 series, which is expected to launch in September, and is ramping up production. Contractors in China, including Foxconn's factory in Shenzhen, are recruiting workers to meet this demand.
In a separate development, Apple has cut prices of its iPhone models in India by 3-4% following a reduction in basic customs duty on mobile phones from 20% to 15% in India's annual budget. This price reduction applies to models such as the iPhone 13, 14 and 15.